Lilly Completes Acquisition of Prevail Therapeutics in $1.04-Bn Deal
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Eli Lilly and Company has completed its acquisition of Prevail Therapeutics, a New York-based company developing gene therapies, in a $1.04-billion deal ($880 million upfront plus one non-tradable contingent value right worth up to $160 million). The deal was announced in December 2020.

Prevail’s lead gene therapies in clinical development are: (1) PR001 for patients with Parkinson’s disease with GBA1 mutations and neuronopathic Gaucher disease, which occurs in newborns and infants and is characterized by neurological complications due to the abnormal accumulation of glucocerebroside in the brain; and (2) PR006 for patients with frontotemporal dementia with GRN mutations. Prevail’s preclinical pipeline includes PR004 for patients with specific synucleinopathies, as well as potential adeno-associated viruses-based gene therapies for Alzheimer’s disease, Parkinson’s disease, amyotrophic lateral sclerosis, and other neurodegenerative disorders.

The deal included the acquisition by Lilly of the outstanding shares of Prevail Therapeutics for a purchase price of approximately $880 million, plus one non-tradeable contingent value right (CVR). The CVR entitles Prevail stockholders to up to an additional $160 million payable subject to certain terms and conditions upon the first regulatory approval for commercial sale of a Prevail product in one of the following countries: the US, Japan, the UK, Germany, France, Italy, or Spain. To achieve the full value of the CVR, such regulatory approval must occur by& December 31, 2024. If such regulatory approval occurs after December 31, 2024, the value of the CVR will be reduced by approximately 8.3 cents per month until December 1, 2028 (at which point the CVR will expire).

Source: Eli Lilly and Company

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